How is Zakat calculated on money saved monthly to buy a house, and is Zakat obligatory on money lent to a struggling friend, the recovery of which is uncertain?
Your agreement with your friend to take a share of the profit in exchange for the loaned money is usury (riba), which is forbidden in Islamic law, because a loan should not bring benefit to the lender.
As for the on your wealth: you must know the time when your wealth reached the (the equivalent of 85 grams of gold or 595 grams of silver). If a full lunar year passes over it without it decreasing below the nisab, then zakat becomes obligatory on it. Money saved during the year is subject to zakat when a year has passed since you acquired it, or you can pay its zakat in advance along with your primary wealth.
As for the money you loaned to your friend: zakat is obligatory on it, but you are permitted to delay paying the zakat until you receive it, and then pay zakat for the past years.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/110988
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 110988
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy